Coverage.
Article 317
ART. 317. Coverage. —The provisions of this Chapter shall apply to all establishments or undertakings, whether for profit or not, in cases of employment without a definite period.
PD 442 BOOK VI
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Chapter I
Security of Tenure.
Article 318
ART. 318. Security of Tenure. — In cases of employment without a definite period the employer shall not terminate the services of an employee except for a just cause or when authorized by this Chapter. An employee who is unjustly dismissed from work shall be entitled to reinstatement without loss of seniority rights and to his back wages computed from the time his compensation was withheld from him up to the time of his reinstatement.
Employment Without a Fixed Period.
Article 319
ART. 319. Employment Without a Fixed Period. — An employment shall be deemed to be without a definite period for purposes of this Chapter where the employee has been engaged to perform activities which are usually necessary or desirable in the usual business or trade of the employer, except where the employment has been fixed for a specific project or undertaking the completion or termination of which has been determined at the time of the engagement of the employee or where the work or service to be performed is seasonal in nature and the employment is for the duration of the season.
Probationary and Fixed-Period Employment.
Article 320
ART. 320. Probationary and Fixed-Period Employment. — The termination of employment of probationary employees and those employed with a fixed period shall be subject to such regulations as the Secretary of Labor may prescribe to prevent the circumvention of the right of the employees to be secured in their employment as provided herein.
Termination by Employer.
Article 321
ART. 321. Termination by Employer. — An employer may terminate an employment without a definite period for any of the following just causes: The closing or cessation of operation of the establishment or enterprise, or where the employer has to reduce his work force by more than one-half due to serious business reverses, unless the closing is for the purpose of circumventing the provisions of this Chapter; Serious misconduct or willful disobedience by the employee of the orders of his employer or representative in connection with his work; Gross and habitual neglect by the employee of his duties; Fraud or willful breach by the employee of the trust reposed in him by his employer or representative; Commission of a crime or offense by the employee against the person of his employer or any immediate member of his family or representative; and Other causes analogous to the foregoing.
Reduction of Personnel.
Article 322
ART. 322. Reduction of Personnel. - The termination of employment of any employee due to the installation of labor-saving devices, redundancy, retrenchment to prevent losses, and other similar causes, shall entitle the employee affected thereby to separation pay. In case of termination due to the installation of labor-saving devices or redundancy, the separation pay shall be equivalent to one (1) month pay or to at least one-half (1/2) month pay for every year of service, whichever is higher. In case of retrenchment to prevent losses and other similar causes, the separation pay shall be equivalent to one (1) month pay or at least one-half (1/2) month pay for every year of service, whichever is higher. A fraction of at least six (6) months shall be considered one (1) whole year.
Disease as Ground for Termination.
Article 323
ART. 323. Disease as Ground for Termination. —An employer may terminate the services of an employee who has been found to he suffering from any disease and whose continued employment is prohibited by law or is prejudicial to his health as well as the health of his co-employees: Provided, That he is paid separation pay equivalent at least to one (1) month salary or to one-half (1/2) month salary for every year of service, whichever is greater, a fraction of at least six (6) months being considered us-one (1) whole year.
Termination by Employee.
Article 324
ART. 324. Termination by Employee. — (a) An employee may terminate without just cause the employee-employer relationship by serving a written notice on the employer at least one (1) month in advance. The employer upon whom no such notice was served may hold the employee liable for damages. An employee may put an end to the relationship without serving any notice on the employer for any of the following just causes: Serious insult by the employer or his representative on the honor and person of the employee; Inhuman and unbearable treatment accorded the employee by the employer or his representative; Commission of a crime or offense by the employer or his representative against the person of the employee or any of the immediate members of his family; and Other causes analogous to any of the foregoing.
When Employment Not Deemed Terminated.
Article 325
ART. 325. When Employment Not Deemed Terminated. — The bona fide suspension of the operation of a business or undertaking for a period not exceeding six (6) months, or the fulfillment by the employee of a military or civic duty shall not terminate employment. In all such cases, the employer shall reinstate the employee to his former position without loss of seniority rights if he indicates his desire to resume his work not later than one (1) month from the resumption of operations of his employer or from his relief from the military or civic duty.
Chapter II
Retirement.
Article 326
ART. 326. Retirement. — Any employee may be retired upon reaching the retirement age established in the collective bargaining agreement or other applicable employment contract. In case of retirement, the employee shall be entitled to receive such retirement benefits as he may have earned under existing laws and any collective bargaining or other agreement.
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Source: Supreme Court E-Library, Republic of the Philippines. Philippine laws are public documents (works of the government).
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